significantly higher satisfaction with their primary financial
institution in Canada says JD Power image credit: A9 studio/shutterstock
The number of financially unhealthy Canadian small businesses has risen to an estimated 60%. At the same time, satisfaction among small businesses with their primary bank has declined for a second consecutive year according to JD Power. Specifically, overall satisfaction among small businesses has declined 3 points (on a 1,000-point scale) to 652.
JD Power 2025 Canada Small Business Banking Satisfaction Study – main business concerns
Inflation remains the top economic concern for small businesses. This was mentioned by 54% of respondents but is down from 61% in 2024. Tariffs appeared on the list for the first time and is noted as a challenge by 40% of respondents. Supply chain constraints were noted by 34% of respondents, down from 36% a year ago.
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“There is a strong relationship between a business’s financial health and its satisfaction with its bank,” said Paul McAdam, senior director of banking and payments intelligence at JD Power.
“Financially healthy small businesses have higher satisfaction—a gap of 126 points—than those that are financially vulnerable or constrained by cash or capital. The financial needs of small businesses are unique. This reflects the critical role proactive communication; services that support small business financial health and bank relationship managers play in assisting small businesses. Satisfaction levels rise when banks deliver advice and services that help businesses meet their spending and saving goals, manage their budget and debt and make better financial decisions.”
JD Power 2025 Canada Small Business Banking Satisfaction Study –other key takeaways
E-Commerce small businesses are more satisfied. Regardless of financial health, e-commerce businesses have significantly higher satisfaction with their primary financial institution than those operating in other industry sectors (698 vs. 624, respectively).
Importance of financial advice. Nearly three-fourths (71%) of e-commerce businesses confirmed receiving financial advice or guidance from their bank during the past year, while only 53% of other businesses received a similar service from their bank. Nevertheless, an overwhelming majority (93%) of all small businesses confirmed the advice received influenced their business habits.
Proactiveness goes a long way: Among the top key performance indicators that have the greatest effect on satisfaction are receiving proactive communication from the bank; the bank explained its fee structure; and not experiencing a problem with the bank. Small businesses value receiving proactive guidance from their banks, particularly on how banks can help businesses save time or money and avoid problems.
RBC tops study ranking by major bank brands
RBC ranks highest in small business banking customer satisfaction with a score of 663 on the 1,000-point scale, with BMO (653) second. TD (651) ranks third ahead of CIBC (647) and Scotiabank (641).
